City File: Auditors 'hit small clients'
Sunday 10 October 1993
The survey, by Glasgow-based JDH Consultants, spans 647 companies including the FT-SE 500. Together they generate total fees of pounds 508m - pounds 310m in audits and pounds 198m in non-audit work.
Audit fee income is up 2 per cent on last year, with Arthur Andersen, which saw an 11 per cent increase in revenue, leading the field. However, the 37 smaller auditors also included in the study showed an 8 per cent drop in income as they were battered by bigger rivals.
The same pattern of big winning out at the expense of small emerged with clients. Apart from Grant Thornton, the auditors surveyed generally secured larger increases from small clients. The trend for big companies with clout to go to tender - or threaten to do so - partly accounts for this pattern. Companies going to tender last year saved an average 32 per cent in fees.
More disturbing still for clients was the widespread variation in fees among companies of the same size and sector. In the health and household sector, fees varied by a factor of as much as 10; one company with turnover of pounds 1bn paid pounds 1,700 per million pounds of sales, while another paid only pounds 170.
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 3 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...